The ABS conducted its first retail industry collection in respect of 1947-48 and has repeated them at about six yearly intervals until the most recent, undertaken in respect of 1998-99. This article outlines some of the main changes in the characteristics of the retail industry over the last decade.

Compared with 1991-92, results for 1998-99 show that the number of businesses in the retail trade industry increased by 18% and employment increased by 33%. Total income over the period increased by 48%, representing an annual growth rate of 5%, while operating profit before tax almost doubled to $5.4b (table 21.7).

21.7 RETAIL INDUSTRY - 1991-92 and 1998-99

Units

1991-92

1998-99

Percentage change%

Businesses(a)

no.

83,596

98,289

17.6

Total employment

no. of persons

831,315

1,104,651

32.9

Total income

$m

114,307

169,251

48.1

Operating profit before tax

$m

2,738

5,423

98.1

Operating profit margin

%

2.4

3.2

. .

(a) Strictly the number of management units.

Source: Retail Industry,Australia, 1991-92 and 1998-99 (8622.0).

The retail sector is dominated by businesses located in the eastern seaboard States (table 21.8), with three-quarters of retail industry employment, wages and salaries and income being accounted for by businesses in New South Wales, Victoria and Queensland. In 1998-99 New South Wales retailers accounted for the largest share, with 33% of the industry's employment, wages and salaries and income. In terms of total income, the percentage contributions for the remaining States and Territories in descending order were Victoria (23%), Queensland (18%), Western Australia (10%), South Australia (7%), Tasmania (4%), the Australian Capital Territory (2%) and the Northern Territory (1.5%). This order was also maintained for employment and wages and salaries. The distribution of these statistics is consistent with the estimated resident populations of the States and Territories at June 1999.

21.8 RETAIL INDUSTRY, By State - 1998-99

State/Territory

Total income

$m

Wages and salaries

$m

Employment(a)

no.

New South Wales

56,446

6,240

364,259

Victoria

39,170

4,504

258,874

Queensland

30,750

3,268

201,976

South Australia

12,657

1,569

89,972

Western Australia

17,239

1,833

106,544

Tasmania

6,604

630

43,034

Northern Territory

2,523

297

15,224

Australian Capital Territory

3,860

394

24,786

Total

169,251

18,736

1,104,651

(a) At 30 June 1999.

Source: Retail Industry, Australia, 1998-99 (8622.0).

In 1998-99 the supermarkets and grocery stores industry generated the highest retail sales in the retail sector ($38.3b) which was 26% of the total retail sales. Specialised food retailing, furniture, houseware and appliance retailing, motor vehicle retailing and motor vehicle services were the next highest, each contributing around 11% to total retail sales (table 21.9).

21.9 RETAIL SALES, By Industry Group - 1998-99

Industry group

Retail sales

$m

Share of total

%

Supermarket and grocery stores

38,329

26

Specialised food retailing

16,410

11

Department stores

11,885

8

Clothing and soft good retailing

8,996

6

Furniture, houseware and appliance retailing

16,266

11

Recreational good retailing

7,493

5

Other personal and household good retailing

14,896

10

Household equipment repair

96

1

Motor vehicle retailing

16,161

11

Motor vehicle services

15,697

11

Total retail trade

146,229

100

Source: Retail Industry, Australia, 1998-99 (8622.0).

Australians spent $146,229m on retail purchases during 1998-99. Food and groceries accounted for more than a third of these purchases, with takeaway food the highest single contributor to sales of food and groceries. The broad retail commodity grouping food and groceries accounted for $51,542m, or 35% of the total, on average about $2,700 per head of population. The largest selling food and grocery items were takeaway food ($7,532m); fresh fruit and vegetables ($5,181m); cigarettes, cigars and other tobacco products ($4,719m); and bread, cakes, pastries and biscuits ($3,919m). The next largest commodity groupings were personal and other goods, on which Australians spent $31,591m (22%), and motor vehicles and associated goods $30,111m (21%).

Information relating to gross margins for individual commodities is available for the first time (the gross margin is the difference between the price at which a business purchases a good and the price for which it is sold, expressed as a percentage of the selling price). The individual commodities with the highest gross margins were jewellery and silverware, a gross margin of 49%, and womens' and girls' clothing at 46%. The individual commodities with the lowest gross margins were new cars and passenger vans at 5%, and petrol, diesel and distillate with a 7% gross margin (table 21.10).